Oil products consumption in India showed some signs of recovery in the first half of September thanks to easing monsoon rains and relaxed COVID-19 restrictions, according to preliminary data from state-owned refiners, which contribute to about 90% of domestic fuel sales in the country.
Gasoline sales in the country stood at 544,000 bpd during the period, rising and by 7% from 507,000 bpd in the first two weeks of August and by 2% from 532,000 bpd a year earlier. Market participants attributed the increase to the lifting of most travel restrictions. Diesel consumption in the first half of September rose by 20% month-on-month to 1.06 million bpd but declined by 6% year-on-year, as the economy continued to suffer from a surge in COVID-19 cases.
LPG consumption in the period increased by 13% year-on-year and by a similar rate month-on-month. Jet fuel demand rose by 16% month-on-month in the first half of September as domestic flights increased operations, but remained 60% lower compared to a-year-ago level. Fuel demand typically increases during the festive period of October-December, but the gain is likely to be capped by rising Covid-19 infections.
